California Tribe and VGW Ink Agreement for Social Gaming Venture
VGW (Virtual Gaming Worlds), an Australian gaming company, has established a significant partnership with the Kletsel Dehe Wintun Nation of the Cortina Rancheria in California. This partnership, facilitated by the Kletsel Economic Development Authority (KEDA), marks VGW's first tribal partnership in the state and allows them to offer free-to-play social gaming and sweepstakes casino platforms statewide.
The partnership comes amidst active legislative debates over Assembly Bill 831 (AB 831), which aims to ban sweepstakes casinos operating under the "dual currency" model in California. The bill has strong backing from major tribal groups like the California Nations Indian Gaming Association (CNIGA) and the Yuhaaviatam of San Manuel Nation, who argue that unregulated sweepstakes undermine tribal exclusivity and consumer protections. However, KEDA, representing the Kletsel tribe, opposes AB 831, emphasizing that it threatens smaller tribes’ ability to pursue legitimate economic opportunities and generate alternative revenue through digital platforms.
Laurence Escalante, VGW’s CEO and founder, has commended KEDA's decision to oppose AB 831. Escalante, who is known for advocating for responsible gaming and consumer protections, has stated that VGW operates with the core value of "we do what's right."
The partnership between VGW and KEDA is a response to the potential outlawing of sweepstakes games in California. If AB 831 were to pass, it could criminalize legitimate social gaming businesses, a concern shared by both VGW and KEDA leadership. They advocate for modern regulatory frameworks that support responsible gaming, tribal sovereignty, economic opportunity, and consumer protections, rather than an outright ban.
As of mid-August 2025, AB 831 is in the California Senate Appropriations Committee’s “Suspense File” awaiting fiscal review before it may proceed to a full Senate vote. This leaves sweepstakes gaming operations in a state of uncertainty but also temporary reprieve, allowing VGW and the Kletsel Dehe Wintun Nation to advance their social gaming offerings while the legislature decides on AB 831’s future.
This partnership highlights a divide within California’s tribal gaming community between larger tribes seeking to protect traditional gaming exclusivity, and smaller tribes embracing digital social gaming to diversify revenue amid regulatory uncertainty. Eric Wright, KEDA’s CEO, believes digital platforms could have a positive impact on tribal community needs such as healthcare, housing, and education.
The partnership between VGW and KEDA could be beneficial for tribal communities in terms of economic development opportunities. According to Wright, large, well-established gaming tribes are self-serving in advocating for policies that restrict emerging digital commerce opportunities for smaller and less-advantaged tribes. Sweepstakes gaming, if regulated appropriately, is reportedly capable of generating over $1 billion annually and could potentially bring in $200–300 million in tax revenue for the state [3].
This partnership may secure a firmer foothold for companies like VGW, which have come under scrutiny from multiple jurisdictions. Several states have issued cease-and-desist letters to VGW and others through their gambling regulators. Notably, New Jersey has outlawed social and sweepstakes games. However, with a local partner like KEDA, VGW can navigate these regulatory challenges more effectively.
The partnership was signed on Monday, August 18, and VGW is set to launch its free-to-play online social games and platforms, including sweepstakes, in California under the guidance of KEDA. As VGW continues to grow and evolve, this partnership represents a strategic shift towards engaging with local communities where they operate, rather than opposing them.
References:
- Virtual Gaming Worlds Partners with Kletsel Dehe Wintun Nation
- VGW and Kletsel Dehe Wintun Nation Partner to Offer Social Gaming in California
- Sweepstakes Gaming Could Generate Billions for California
- AB 831 Holds California's Sweepstakes Gaming in Suspense
- Kletsel Dehe Wintun Nation Opposes AB 831
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